OTTAWA (16 July 2012) – The home resale market suffered both month-over-month and year-over-year declines, according to figures released by the Canadian Real Estate Association (CREA). Price gains remained strong in Toronto but continue to slow in Greater Vancouver while accelerating in Calgary.

CREA reported that sales over Multiple Listing Service (MLS) eased 1.3% on a month-over-month basis in June, following a 3.4% decline posted in May. National activity was down from the previous month in slightly more than half of all local markets with Greater Toronto and Vancouver contributing most to the small decline.

“Canada's housing market lost a little altitude in June, but it’s still flying pretty high,” CREA president Wayne Moen said in a statement.

Actual (not seasonally adjusted) activity was down 4.4% in June compared to the same month last year – marking the first year-over-year decline in national activity since April 2011.

Boosted by strong activity in March and April, a total of 257,193 homes traded hands over the MLS in the first half of 2012 – up 4.7% from levels reported over the same period in 2011, giving 2012 the strongest sales for the first half of any year since 2007.

“Home buyers didn’t rush their purchases before the most recently announced changes to mortgage regulations came into effect,” CREA chief economist Gregory Klump noted. “That’s a big change compared to what we saw as a response to previously announced changes. It will take some time before the compound effect of previous and recent changes to regulations on Canada's housing market becomes apparent.”

The number of newly listed homes rose 1.4% in June compared to May. The uptick was led by a second consecutive increase of new supply in Toronto. Some 42 local markets, out of 100 markets across the country, registered a monthly increase in new listings of at least 1%.

The actual (not seasonally adjusted) national average price for homes sold in June 2012 was $369,339, down 0.8% from the same month last year. While average sale prices in June were up year-on-year in about seven out of every 10 local markets, the national average price continued to be skewed downward by compositional factors – most notably by fewer sales in Vancouver in recent months compared to stronger levels last year. Netting Vancouver out of the national average price calculation yields a 3.2% year-over-year increase.

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